Parag Milk Foods third quarter net profit dips 59% to Rs 11.21 crore

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Dairy company Parag Milk Foods on Friday reported a 59.35 per cent decline in net profit to Rs 11.21 crore for the third quarter ended December 2020.

The company's net profit stood at Rs 27.58 crore during the same quarter of 2019-20, Parag milk Foods said in a BSE filing.

The revenue from operations for the quarter under review declined by 25.17 per cent to Rs 473.59 crore compared to Rs 632.92 crore in the same quarter of the previous fiscal.

"We are happy to report a gradual recovery in our performance during the quarter with a strong performance in our core consumer products. The shift in consumer preferences towards trusted brands continues and is driving strong traction in the home consumption of our core categories, such as ghee, paneer, and cheese buoyed further by a good festive season," Parag Milk Foods chairman Devendra Shah said.

The company has been able to sustain its gross margins sequentially, despite some rise seen in milk prices, given its focus on the core value-added dairy products (VADP) portfolio, which has led to a better business mix, he said.

"Further, we continue to maintain our thrust on cost-optimisation and productivity enhancement," he added.

This has been another quarter of healthy recovery and the company expects to sustain the momentum going forward as it moves towards normalcy of operations, he stated.

"We are focussing on weighted distribution, increasing our stock-keeping units (SKUs) and widening our product range in line with changing consumer preferences. As the market is shifting towards premiumisation with a clear thrust towards value-added dairy products, we are the forerunners with more than 75 per cent of our portfolio comprising value-added products," he added.